India has become an “outlier” in the world community because its recent policy, regulatory and legal decisions have deteriorated the intellectual property rights in the country, a US report has said.

The report ‘India: International Outlier on IP’ by the US chamber of Commerce said if India strengthens its intellectual property regime and increases its score on GIPC IP Index by 14.9 per cent, it can reach the level of FDI similar to Brazil, Russia and China.

“India has been less able to attract FDI than its BRIC (Brazil, Russia, China) peers since the 1980s. Also in regard to FDI, India is noticeably weaker than other emerging economies, which started off at similarly low levels of investment and had similar IP rights environments to India’s in the 1980s,” the 23—page report said.

“We are seeing a disturbing trend, where India is turning inward; in which India is directing barriers to trade and investment, and discriminatory practices. India is at crossroads,” Congressman Erik Paulsen said.

“Their leaders need to determine whether their country will continue to have marketable liberalisation policies that have led to their strong growth, or if they’re going to turn back in the wrong direction,” he said.

“We’ve been hearing concerns from a multitude of businesses of patents violation and compulsory licenses, to piracy within the software and film industry. Frankly, the news coming out of India has not been good for American innovators,” said Congressman John Larson.

“US and international partners understand that innovators have the right to own what they create, and take steps to ensure that those rights are protected. This also benefits India,” he said.

Mark Elliot, Executive Vice President, US Chamber of Commerce’s Global Intellectual Property Center, said recent policy and judicial decisions that invalidate intellectual property rights, which have been increasing in India, cast a daunting shadow over its otherwise promising business climate.

“From the revocation of patents to the staggering rates of piracy, India stands alone as an international outlier in IP policies. This trend is bad for investment, innovation and international trade,” Elliot said.

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